Encouraging Report, page-76

The validation of uptake of OBJ's diamagnetic repulsion technology by global behemoth Procter & Gamble is the critical point to be made. This was always regarded as the "lucky break" that OBJ needed, which happened in late 2014 when P&G launched the SK-ii wand. We now understand that this was a "soft launch" as P&G were hardly going to commit to a new technology and a new way of applying cosmetics when they didn't know if consumers would embrace it. The wheels and cogs of a corporate giant like P&G turn very very slowly, but we now know that OBJs technology is becoming a central part of their cosmetic products platform. This year we will see the launch of an OBJ product in Australia (Magnemasks). It's taken 4 years to reach this point but this, as well as all the other ever expanding product rollouts, indicates that the technology is valid. Last I heard, P&G continues to involve OBJ in their future rollout plans that extend to 2023.

The disappointments cannot go unnoticed of course, and these are reflected in the current shareprice. Most notably, the disappointments include:
- There is only P&G as OBJs only royalty paying customer. When will OBJ get another client on board ?
- The income generated from the P&G relationship is much less that th market had hoped for. It appears that the original agreement in that respect wasn't negotiated when OBJ was in a powerful bargaining position (it had no clients then) which explains what appear to be low royalty rates.

The low share price is explained by these factors. Will there be another partnership with another global company? Will OBJs technology have applications beyond cosmetics? Will they get more money from future deals? Will there be any future deals????

These questions are having a significant effect in the mind of the market. The absence of clear answers is depressing the share price. Personally, however, I have never been more confident that all of these questions will be answered affirmatively. And we will start to see these questions answered in that way very shortly - within months - in my humble opinion.

J